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Run a scenario analysis for the above problem using the following scenarios. (Assume the answers from question 1 represent the base scenario) Good (Prob 30%)
Run a scenario analysis for the above problem using the following scenarios. (Assume the answers from question 1 represent the base scenario)
| Good (Prob 30%) | Bad (Prob 30%) |
Initial Cost | $450,000 | $575,000 |
Salvage | $60,000 | $25,000 |
Savings | $70,000 | $40,000 |
Sales growth rate | 5% | -1% |
Required rate of return | 9% | 14% |
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